1. INTRODUCTION TO ECONOMICS

2. Human Wants and Needs Survival related needs
Culturally determined wants
Characteristics of wants
Varied
Unlimited

3. Resources Used to satisfy needs & wants Four types of resources Labor
Natural
Capital
e.g., machines and equipment
Efficiency through indirect production
Entrepreneurship--organizing skills

4. Resources Characteristics of resources Technology Limited Versatile
increases society’s ability to satisfy needs and wants

5. scarcity The Economic Problem
Limited resources & unlimited wants cause
How do we deal with scarcity?
scarcity

6. The Economic Problem (cont.)
Ways of dealing with scarcity
Increasing supply
Finding substitutes
Reducing demand
Violence
Prices
Economics--deals with methods of allocating scarce resources $

7. The Economic Problem (cont.)
Questions to be answered by every society
What to produce
How to produce
For whom to produce

8. The Economic Problem (cont.)
Equity vs. Efficiency ME ME
YOU
YOU